Grim reality: Austin multifamily, retail, office rents climbGrim reality: Austin multifamily, retail, office rents climbhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=1472015-08-13T12:33:00Z2015-08-13T08:15:00Z

AUSTIN - If you are trying to rent any type of property in Austin these days, the amount you will pay is going up dramatically.

  • Residential rents in the Austin area have increased sharply in the first six months of the year, up 5.5 percent to $1.33 per sf in June, according to a mid-year report from Capitol Market Research.

    Meanwhile, occupancy rates have held steady at about 94 percent since the start of the year, stemming a nearly 4 percent drop in occupancy rates that began in second quarter 2012.

    According to the data, rents increased in all Austin submarkets in the first half of the year. They were led by an 8.3 percent increase in rents in Round Rock to a 2.5 percent increase in rents in San Marcos so far in 2015.

    During the first six months of the year, occupancy levels in the Austin retail real estate market increased from 92.7 percent to 94 percent. As occupancy levels rose, rental rates for vacant space in the city increased by $1.16 per sf to $21.01 in June.
  • New retail construction was almost entirely made up of ground-floor retail in new mixed-use projects such as Lamar Union, Seaholm, and Corazon concentrated in the region’s downtown core.

    According to data distributed by Capitol Market Research, more than 1.6 million sf of new shopping center space has already broken ground, and more than 3.7 million sf of future retail space is planned. This means that a lot of new inventory is coming on the market through 2016.
  • Office rental rates are climbing even as vacancies are slightly increasing in this sector. This is because a crop of new commercial office development has come online in the past year.

    In June, the average office rental rate climbed up to $32.83 per sf, $3.62 per sf more than at the same time in 2014. Class A average rents rose 10.6 percent compared to the same time last year to $47.80 per sf.
Austin Business Journal
Austin-Round Rock
http://www.bizjournals.com/austin/blog/real-estate/2015/08/the-grim-reality-austin-residential-retail-office.htmlRead more at {Source}

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